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Axillary bud and terminal bud are derived from the activity of
A. Parenchyma
B. Lateral meristem
C. Apical meristem
D. Intercalary meristem

Answer
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Hint: The tissues that are present in the tip region of the roots and the shoots of the plants that result in the increase of the plant height and are formed by the active division of the undifferentiated cell.

Complete answer:
The activity of the apical meristem results in the formation of the axillary buds and the terminal buds. These tissues are found in the growth regions of the plant and increase the roots and shoot tips.

Additional Information: -Meristem is the group of actively dividing cells that give side to the new cells after division.
-These tissues have the ability to divide and form various organs and tissues of the plant body.
-They are divided into three types depending upon their location: apical meristem, intercalary meristem, and lateral meristem.
-Apical meristem is present in the growing regions of the root and shoot tips which increases the height of the plant.
-The intercalary meristem is present in the nodal region of the plant which helps the plant in cell division and cell elongation.
-The lateral meristem is present in the bark of the tree which increases the girth of the plant.
-The tissues are also classified on the basis of the origin: promeristem, primary meristem, and secondary meristem.
-In 1858, the term meristem was the first time used by Carl Wilhelm von Nageli.

So, the correct answer is ‘Apical meristem'.

Note: The apical meristem is of two types: the shoot apical meristem (SAM) and the root apical meristem (RAM). These meristems are arranged in various layers of which the outermost layer is known as tunica and the innermost layer is known as corpus. The apical meristem is sometimes present in the lower or middle part of the plant mostly in the case of the arctic plants.